ASSESSMENTS
The Limited Geopolitical Clout of Israeli Natural Gas
Apr 2, 2013 | 10:00 GMT
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Summary
The start of natural gas production at a recently discovered field has raised hopes of energy independence in Israel, but few effects of the newfound resources will be felt outside Israeli borders. On March 30, Israeli Prime Minister Benjamin Netanyahu announced that natural gas had begun flowing to Israel from Tamar, a field located roughly 90 kilometers (50 miles) off Israel's northern coast. Exactly how much natural gas is being pumped from Tamar is unclear. But if projections are realized, the Tamar field could make Israeli access to energy more secure and stable than at any other point in the country's modern history.
The Israeli Energy and Water Resources Ministry estimates that Tamar could meet between 50 percent and 80 percent of the country's natural gas needs over the next decade. The field may also allow Israel to incentivize additional domestic energy production and reduce the country's use of coal and fuel oil in sectors where demand overlaps with natural gas, such as power generation. However, Israel's ability to leverage its energy assets to affect the policies of neighboring countries or resolve the myriad challenges it faces on its borders will be constrained by the region's enduring geopolitical realities.
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